demystifying transactive distribution grid (tdg) and ...€¦ · demystifying transactive...

GridWise® Architecture Council

Usman Sindhu, Product Marketing Manager, eMeter/Siemens

Demystifying Transactive Distribution Grid (TDG) and Finding Innovative Solutions

2 December 10-11, 2014, Portland, Oregon

The next wave of innovation for the utilities [broadly] will incorporate

Digitalization where Smart Grid, Market-Driven Operations, Transactive

Distribution Grid (TDG), and Customer Engagement will play a key role


Agenda

Observations, market trends, and defining Transactive

Distribution Grid (TDG)

Is change towards

transactive model really happening,

where?

A cross- industry example

Path towards TDG in the next

3-5 years Key Takeaways


Agenda



Is change towards

transactive model really happening,

where?


Path towards TDG in the next

3-5 years Key Takeaways


What did I recently hear at the European Utility Week?

"Nest is not stealing customers from utilities. We're helping them get closer to the consumer. Nest is working with some utilities to drive their marketing campaigns”

Tony Fadell, Nest CEO "Utilities need hardware now, and they will need it in the future. But hardware will get smarter. Hardware has been, and will remain, a critical piece to the electrification. However, digitalization will be the next frontier, bringing data-focused decision-making to utilities”

Dr. Weinhold, CTO Siemens Energy Management

"If utilities don't embrace change, consumers will become the disrupters. Consumers now have the power and influence to push utilities to change how they communicate, and offer new services”

Ian Merchant, Former CEO of Scottish and Southern Energy

6

The new wave of technology innovation for the utilities…

Gartner calls it Nexus of Forces

IDC calls it the Third (3rd) Platform …Eventually utilities become a Digital Grid

Smart Grid and Transactive Distribution Grid feeds into the Digital Grid

Big Data Analytics Cloud Social Mobile

7

…but it’s also about people and things

For utilities it means to engage customer with right tools such as analytics, demand response, demand management, market transactions, mobility, smart device management

The Digital Strategy is not complete without connecting smart devices with consumers

8

Why utilities need to innovate or embrace the Transactive model? It’s the rate of change

9

Solar, battery storage, and EV cost/ROI can reach grid parity in the next 5-10 years

Source: UBS Q-Series Global Utilities, Auto & Chemicals 2014

10

Defining Transactive Distribution Grid

Transactive Distribution

Grid

Grid Control

DER/Smart Devices

Market Operations

A TDG is an intelligent network platform that will provide safe, reliable and efficient electric services by integrating diverse resources such as distributed generation, demand response, energy efficiency, and energy storage. The TDG fosters broad market activity that monetizes system and social values, by enabling active customer and third party engagement that is aligned with the wholesale market and bulk power system.

Transactive energy model is an evolving framework of energy distribution and control among market participants and consumers.

Source: Adapted from “Reforming The Energy Vision - NYS Department Of Public Service Staff Report And Proposal”


Agenda



Is change towards transactive model really happening,

where?


Path towards TDG in the next 3-5

years Key Takeaways


Key examples of transforming the Distribution Grid

Pilots

Actively Pursuing

Regulatory Activity

Pilots in Austria

Pilots and active retail market in TX

Active customer

DER

Regulatory reforms in

NY, MA

Spain and Portugal

UK RIIO, Ofgem

13

Common themes in grid reforms

Reinventing the distribution grid role

Integration of DER

New rate design model

Customer-driven

Demand management

Network management

Accommodate multiple players

Smart devices

NY REV CA DG Proceeding

MA Modernization

Act UK RIIO

Not mentioned Less clear vision Very clear vision

14

Salzburg AG – Building to Grid European Example

• Buildings as active smart grid participants • Question: How can buildings contribute to peak load reduction and enhanced energy

efficiency in power grids by intelligent load management? • Field test with 10 real-life buildings

Smart Grid Buildings

active integration

Power system management grid optimization

building control building optimization

bidirectional communication

Source: Salzburg AG

15

Salzburg AG – Building to Grid Functional concept

European Example

Home Automation

HVAC system

B E A

Flex

ibili

ty O

pera

tor

flexibility request, confirmation

forecast of flexibility

energy system

grid and market orientated control grid orientated control User Interface Building Energy

Agent BEA

Source: Salzburg AG

16

German aggregator Mark-E example

Mark-E’s overview: Mark-E is one of the leading aggregators of control reserve capacity in Germany, with over 1 GW under management. Mark-E is also an aggregator PV- and Wind-generation for marketing at wholesale market Aggregation and marketing of renewable energy and control reserve capacity is a low-margin game – Mark-E needs to scale up volume to stay competitive. Solution: Phase 1 – Set up DER integration software and service to integrate assets on time & material basis. Mark-E remotely operates software to market renewable energy and control reserve capacity at energy markets. Phase 2 - Siemens is responsible for the technical integration into the Service Center, Mark-E is responsible for the commercial aggregation.

European Example

17

PJM Interconnection NAM Example

PJM coordinates the movement of electricity in all or parts of 13 states and the District of Columbia. It services 60 million US customers. PJM monitors and coordinates more than 1,365 electric generators, 61,591 miles of high-voltage transmission lines and 6,224 substations.

Business Problem Solution

Enhance grid reliability and sustain wholesale power market innovations

Integrating PJM’s diverse set of legacy systems e.g Energy Management (EMS), Market Management (MMS) and emerging Smart Grid applications

Embedded security into all data-driven operations Technology architecture and process to coordinate

operations of power generation, utilities, and power markets. In turn, improving important reliability metrics

The grid management system integrates the Siemens Spectrum Power™ energy management system and is based on a secure and model-driven integration platform -jointly developed with PJM

Two fully-staffed primary control centers at different locations are fully functional and capable of running the grid either independently or jointly as a single virtual control center

A Web-enabled user interface (UI) framework provides situational awareness, with capabilities for advanced visualization of data and system information

Source: Siemens Project

18

NY REV / DSPP scope of market and grid ops

Source: Adapted from NY REV Proceedings

• Real-time load monitoring • Real-time network monitoring • Adaptive protection • Enhanced fault detection and

location • Outage and restoration notification • Automated feeder and line switching

(FLISR/FDIR) • Automated volt/VAR control • Real-time load transfer • Dynamic capability rating • Diagnosis and notification of

equipment condition • Power flow control • Automated islanding and

reconnection (microgrid) • Electricity storage • Algorithms for grid control and

optimization

• Direct load control • DER power control • DER power factor control • Automated islanding and

reconnection • Electricity storage • Algorithms and analytics for

Customer/DER/Microgrid control and optimization

• Dynamic event notification • Dynamic pricing • Market-based demand response • Dynamic electricity production

forecasting • Dynamic electricity consumption

forecasting • M&V for producers and

consumers (premise/appliance/resource)

• Participant registration and relationship management

• Confirmation and settlement • Billing, receiving and cash

management • Free-market trading • Algorithms and analytics for

market information and operations

Grid Customer/DER/ Microgrid Market

NAM Example


Agenda




where?



years Key Takeaways


A system of Tokenization in the retail industry

Source: PCI DSS Tokenization Guidelines


Agenda




where?



years Key Takeaways

22

How to address an emergingTransactive Distribution Grid

Basic Goals Enable utilities with proven, near term solutions that provide options to meet evolving future needs

Future Vision Deliver future-ready applications for grid control, market and customer operations

Key Players Support our ecosystem of global and regional partners to offer superior value to our customers

Key Technologies Real-time / event-driven software, analytics in everything, management of digitalization & devices

Source: Siemens Transactive Distribution Grid Ecosystem

23

Three focus areas in the near future for TDG

Grid Control

Market Operations

Smart Devices

Transactive Distribution

Grid

Observable with sensors and dynamic operating models

Loosely coupled network of networks

Control points with closed loop operation

Forecasting to support a dynamic market environment

Information security

Market-aware grid-friendly devices to serve the consumer & grid

Autonomous rules or goals-based operations

IPv6 & Std protocols Secure e.g. PKI Management of

devices and distributed apps

Transparent Pricing

Energy & Transport priced separately

Grid connection location matters

Fluid movement among product & service choices & payment options

Interval meter settlements

Information security

Source: Siemens Transactive Distribution Grid Ecosystem

24

Example solutions to some areas of the TDG market Key Operations Example Areas Software Applications

Energy Demand / Supply Balancing – Market

Operations

Transmission Operations

Distribution Operations

Customer Services

Ancillary Services

Price/rate calculations Settlement Demand

calculation

Energy Shift Dashboard

Consistent delivery

System reliability

Bulk DER supply

Portfolio mgmt

Energy mgmt Resource balance

DER storage Voltage optimization

Demand Response

Outage mgmt System reliability

Power quality

Energy balance

calculation

Integrate customer DER

Net metering calculation

Smart metering

Energy consumption / monitoring

Billing

Customer engagement/

DR Energy

efficiency

Risk mitigation

3rd party services

Repairs / installation

Home energy mgmt

Meter Processing and Settlement Platform

DR applications

Market management and comm. apps

Energy management

systems

DER integration apps

DMS EMS

DER integration DR apps

Visualization apps

Smart device mgmt

Customer engagement apps

DR apps

Analytics

Partners / local providers

Real-time/ time constraints

Time constraints but variable Source: Adapted from GridWise Transactive Energy Framework

Meter data processing


Agenda




where?



years Key Takeaways

26

How solution providers and utilities’ partners can take part in the TDG ecosystem

Evaluate market development

Engage stakeholders Build framework

Deliver people, process, and technology

Fine-tune and evolve

Market specific analysis Solution ready to support IoT and Digitilization Derive examples from existing engagements

Work with utilities and partners to drive vision Use existing customer examples to engage industry participation Influence policy and regulators

Combination of COTS and custom solutions per local drivers Make processes efficient enterprise-wide and focus on cost-effective ways create people education, awareness, and skills onramp

Use new tools and applications to keep utilities evolving New idea immersions and centre of excellence Knowledge sharing with influencers and industry participants

Develop framework based on local regulations and market demands Utilize existing centre of excellence to speed delivery in a phased approach Include industry and solution specific standards


Questions to address and future exploration

• Cybersecurity – Concept of an open market, a stock exchange. B2B security needs to be in place

• Data and transaction management - Who has the control and who governs data transaction?

• Data visualization and situational awareness- How to pin-point problems when market transaction takes place? Who will remediate and who will be penalized ?

• Regulatory policy– Which regulatory body will govern different sets of transactions? How will demand & supply transactions be visualized and which parties can take action?

• Scope of distribution grid – How much control and functions does distribution grid has? Will economics work well with putting or relieving control of market transactions ?

28

Contact Info

• Usman Sindhu Product Marketing Manager eMeter, A Siemens Business

• Phone: +1 (650) 245-5863 • E-mail: [email protected] • http://w3.siemens.com/smartgrid/global/en/products-

systems-solutions/smart-metering/emeter/Pages/overview.aspx

mailto:[email protected]

http://w3.siemens.com/smartgrid/global/en/products-systems-solutions/smart-metering/emeter/Pages/overview.aspx



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